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Impact Of Organization Culture On Employee Motivation And Job Performance,
Article · May 2012
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VOLUME NO.3(2012),ISSUE NO.5(MAY) ISSN0976-2183
CONTENTS CONTENTS CONTENTS CONTENTS
Sr.
No.
TITLE & NAME OF THE AUTHOR (S)
Page No.1. MARKET INTELLIGENCE - AN EMPIRICAL STUDY OF MARKET BEHAVIOR OF AGRICULTURAL COMMODITY S. P. BHARDWAJ, ASHOK KUMAR & K. N. SINGH
1
2. CONSTRUCTING A MULTI-CRITERIA CO-BRANDING STRATEGY MODEL FOR FAUCET INDUSTRY DR. CHAO-CHAN WU, MENG-CHEN CHANG & DR. HAO WANG
7
3. IMPACT OF ORGANIZATIONAL CLIMATE ON ORGANIZATIONAL LEARNING HAMID REZA QASEMI & SAEED BONYADI
16
4. BPO INDUSTRY IN INDIA: B2B MARKET TRANSFORMATION DR. VIJU MATHEW
22
5. DETERMINANT FACTORS THAT ATTRACT INTERNATIONAL TOURISTS TO VISIT ETHIOPIA DR. GETIE ANDUALEM IMIRU
27 6. NON FINANCIAL FACTOR OF MEASURING ORGANIZATIONAL PERFORMANCE BRINGS LONG TERM FINANCIAL CAPABILITY: AN EXPERIENCE
FROM BANGLADESH
MD. MONIRUZZAMAN SARKER, MD.SAHABUDDIN & NAFISA KASEM
39
7. PREDICTORS OF WILLINGNESS TO ADOPT CUSTOMER RELATIONSHIP MANAGEMENT IN NIGERIAN ORGANIZATIONS: A FRAMEWORK APPROACH
EKAKITIE-EMONENA, SUNNY.
42
8. COMPARISON OF VALUE-RELEVANCE OF CASH FLOW AND OPERATING PROFIT IN EXPLANATION OF COMPANIES STOCK RETURN WITH CONSIDERING INFORMATION ASYMMETRY: EVIDENCE FROM TEHRAN STOCK EXCHANGE
ROYA DARABI, B.ZANGANE & SHAHIN SAHRAEI
47
9. CUSTOMER SATISFACTION SURVEY OF TRAINING AND DEVELOPMENT PROGRAMS FOR HUMAN RESOURCE DEVELOPMENT DEPARTMENT OF MANUFACTURING ORGANIZATIONS
MANOJ MEHTA & GEETA DAWAR
52
10. ACCESSING THE INTERNATIONAL CAPITAL MARKETS WITH DEPOSITARY RECEIPTS DR. M. L. GUPTA & DR. SIMMI KHURANA
61
11. A STUDY ON THE MARKETING PRACTICES OF THE KOVILPATTI CO-OPERATIVE MILK SUPPLY SOCIETY LTD.
M. SEKAR & M. SHUNMUGA SUNDARAM
63
12. IMPACT OF ORGANIZATION CULTURE ON EMPLOYEE MOTIVATION AND JOB PERFORMANCE NIDHI MAITHEL, DR. D. S. CHAUBEY & DEEPAK GUPTA
68
13. VALIDITY OF EFFICIENT MARKET HYPOTHESIS IN THE INDIAN STOCK MARKET DR. RASHMI SONI
74
14. ANALYSIS OF PERCEPTIONS OF INVESTORS TOWARDS MUTUAL FUNDS: AN EMPIRICAL INVESTIGATION DR. S. O. JUNARE & FRENA PATEL
81
15. CUSTOMERS’ EXPERIENCE WITH SMALL SCALE RETAIL STORES – AN EMPIRICAL STUDY DR. K. RAMA MOHANA RAO & DR. K. RATNA MANIKYAM
86
16. INDIAN SPICES EXPORTS: THEIR GROWTH AND INSTABILITY DR. D. SRINIVASA RAO
90
17. STOCK PRICE RESPONSES TO THE ANNOUNCEMENT OF BUYBACK OF SHARES IN INDIA DR. ISHWAR P & DR. I. B. CIRAPPA
95
18. INVESTOR BEHAVIOR TOWARDS MUTUAL FUND SCHEMES: AN EMPIRICAL STUDY SHAFQAT AJAZ & DR. SAMEER GUPTA
103
19. MULTICHANNEL STRATEGY – A COMPETITIVE ADVANTAGE TOOL OF ORGANISED RETAILERS P. SATHISH CHANDRA & DR. G. SUNITHA
109
20. STUDY OF SAVING PATTERN AND INVESTMENT PREFERENCES OF INDIVIDUAL HOUSEHOLD IN INDIA MEENAKSHI CHATURVEDI & SHRUTI KHARE
115
21. DEVELOPING INFRASTRUCTURE FOR PROMOTION OF RURAL TOURISM IN THE STATE OF WEST BENGAL: A STUDY ON KAMARPUKUR DR. DILLIP KUMAR DAS & NILANJAN RAY
121
22. PROFITABILITY AND LIQUIDITY MANAGEMENT OF FMCG COMPANIES IN INDIA: A COMPARATIVE STUDY BETWEEN HINDUSTAN UNILEVER LIMITED (HUL) AND ITC LIMITED
DR. BHASKAR BAGCHI & DR. BASANTA KHAMRUI
128
23. A COMPARATIVE STUDY ON BUYING BEHAVIOR OF RURAL AND URBAN CUSTOMERS IN SELECTED DISTRICT OF GUJARAT ARATI. TRIVEDI & PARIMAL. CHAVDA
131 24. RETAILING STRATEGIES FOR CUSTOMER SATISFACTION: COMPARATIVE STUDY OF MORE AND FOOD WORLD
A. SANDHYA RANI
135
25. DIRECT MARKETING OF AGRICULTURAL PRODUCTS - A STUDY OF RYTHU BAZAARS (FARMERS’ MARKET) IN ANDHRA PRADESH DR. K. RAJI REDDY & DR. H. SATEESH
137 26. NEED FOR A PARADIGM SHIFT IN MANAGEMENT TEACHING THROUGH PROFESSIONAL DEVELOPMENT OF FACULTY
AFREEN NISHAT A. NASABI
142 27. CUSTOMERS’ SATISFACTION ON CORE BANKING: A STUDY WITH SPECIAL REFERENCE TO A NATIONALIZED BANK IN THIRUNELVELI
BIJU K, D. DEVANDHIRAN & SREEHARI R
146 28. A STUDY ON CUSTOMER SATSIFACTION OF GOODKNIGHT PRODUCTS IN ERODE, TAMILNADU
N.S.SUGANYA, P. SENTHILKUMAR & K.VISNUPRIYA
153
29. ASSOCIATION BETWEEN DIVIDEND DECISION AND FINANCIAL PERFORMANCE: AN EMPIRICAL ANALYSIS SANJEEV LALHOTRA
157
30. AN EMPIRICAL INVESTIGATION OF CAPITAL BUDGETING PRACTICES IN INDIA PREETI ARORA
166
REQUEST FOR FEEDBACK 170
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IMPACT OF ORGANIZATION CULTURE ON EMPLOYEE MOTIVATION AND JOB PERFORMANCE
NIDHI MAITHEL RESEARCH SCHOLAR PACIFIC UNIVERSITY
UDAIPUR
DR. D. S. CHAUBEY DIRECTOR
UTTRANCHAL INSTITUTE OF BUSINESS STUDIES DEHRADUN
DEEPAK GUPTA RESEARCH SCHOLAR PACIFIC UNIVERSITY
UDAIPUR
ABSTRACT
The success and growth of an organisation depends on how effectively and efficiently does it employee performs and culture is a means through which employees learn and communicate what is acceptable or unacceptable in an organisation in the light of its values and norms. This paper seeks to explore relationship between organization culture and job performance. It was hypothesized that impact of organizational cultural factor does not differ significantly across the organization outcome as perceived by the employees working in the organization Researcher tries to develop the organizational culture variable construct that affects the employees for enhancing work motivation and his performance. 229 respondents working with different manufacturing, trading and service organization in Dehradun District of Uttrakhand state were surveyed. There was evidence to suggest that there is significant difference in the mean of different organizational cultural factor across the orgaisational outcome as perceived by the employees. Hence appropriate organizational cultural variable should be promoted in the organization to enhance the employee’s productivity and in turn improving oprganisational performance.
KEYWORDS
Organisation Culture, Employees productivity, Organiation performance.
INTRODUCTION
mployees are the basic building blocks of an organisation. The success and growth of an organisation depends on how effectively and efficiently does it employee performs and culture is a means through which employees learn and communicate what is acceptable or unacceptable in an organisation in the light of it values and norms. Organization culture is the set of assumptions, beliefs, values and norms that are shared by an organisation member.
Organisation culture being unique and distinctive prescribes some specific modes of behaviour for its employees. It sets a framework within which individual and group behaviour takes place.The match between employees and the organization is very important as there is greater likelihood that they will demonstrate commitment to organizational goals. Motivation is the complex force starting and keeping a person at work in an organisation. Performance is the extent to which an individual is carrying out assignment or task. Job performance is the net effect of an employee’s effort as modified by abilities and roles or task perceptions.The research paper aims to study the impact of organization culture on employee motivation and job performance in Dehradun region of Uttarakhand state. The present study focus on assessing organization culture and its impact by studying the demographic profile of respondents as well as their perception of various organizational culture variables in their organization.
RATIONALE OF THE STUDY
Organizations need continuous commitment from their employees to develop and fulfill their objectives. Management would like its employees to identify with the values, norms and artefacts of the organization, hence the need for organizational culture. Management needs to explain and imbibe its culture in its employees; this will enable the employee to get familiar with the organizational system. It is the proper understanding of the organizational culture that the performance of the employee in the organization. To operate successfully across cultures, it is important to be able to recognize cultural differences and be adaptable (Deter, Schroeder, and Mauriel, 2000). Organisational culture finds expression through the thoughts, intentions, actions and interpretations of members of the organization (Hallett, 2003).
Academic interest in corporate culture is evidenced by the level of attention it has received over the last few decades. The relationship between corporate culture, motivation and job performance has been the subject of abundant research in several fields, including strategic management, organisational behaviour, and industrial organizations. While this topic is rich in studies, many researchers concur on the fact that there is no agreement on the precise nature of the relationship between corporate culture, motivation and job performance. Despite the plethora of studies on corporate culture in the last few decades, there is no widely accepted causal relationship between corporate culture, motivation and job performance. The empirical evidences emerging from various studies about the effect of corporate culture on motivation and job performance have so far yielded mixed results that are inconclusive and contradictory. Because of these contradictory results, the question of whether corporate culture improves or worsens employee’s motivation and job performance is still worthy of further research such as the one being undertaken in this study.
LITERATURE REVIEW
Forehand and von Gilmer (1964) suggest that culture is the set of characteristics that describe an organization and distinguish it from others. Organizational culture has been defined as the “normative glue” that holds an organization together (Tichy, 1982). Denison (1990) identifies four basic views of organizational culture that can be translated into four distinct hypotheses:
♦ The consistency hypothesis – the idea that a common perspective, shared beliefs and communal values among the organizational participants will enhance internal coordination and promote meaning and a sense of identification on the part of its members.
♦ The mission hypothesis – the idea that a shared sense of purpose, direction, and strategy can coordinate and galvanize organizational members toward collective goals.
♦ The involvement/participation hypothesis – the idea that involvement and participation will contribute to a sense of responsibility and ownership and, hence, organizational commitment and loyalty.
E
VOLUME NO.3(2012),ISSUE NO.5(MAY) ISSN0976-2183
♦ The adaptability hypothesis – the idea that norms and beliefs that enhance an organization’s ability to receive, interpret, and translate signals from the environment into internal organizational and behavioural changes will promote its survival, growth, and development.
Schein (1990), in a more comprehensive fashion, defines culture as values and behaviours that are believed to lead to success and are thus taught to new members. Schein (1992) suggests that organizational culture is even more important today than it was in the past.
Morgan (1997) describes culture as “an active living phenomenon through which people jointly creates and recreates the worlds in which they live.”
For Morgan, the three basic questions for cultural analysts are:
• What are the shared frames of reference that make organization possible?
• Where do they come from?
• How are they created, communicated, and sustained
Ravasi and Schultz (2006) state that organizational culture is a set of shared mental assumptions that guide interpretation and action in organizations by defining appropriate behavior for various situations.
Robert A. Cooke, PhD, defines culture as the behaviors that members believe are required to fit in and meet expectations within their organization. The Organizational Culture Inventory measures twelve behavioral of norms that are grouped into three general types of cultures:
• Constructive Cultures, in which members are encouraged to interact with people and approach tasks in ways that help them meet their higher-order satisfaction needs.
• Passive/Defensive Cultures, in which members believe they must interact with people in ways that will not threaten their own security.
• Aggressive/Defensive Cultures, in which members are expected to approach tasks in forceful ways to protect their status and security
Various studies indicate that companies with strong cultures are more likely to be successful, but only under a particular set of conditions. The effect of organizational culture depends partly in its strength. Corporate culture strength refers to how widely and deeply employees hold the company’s dominant values and assumptions. In a strong organizational culture, most employees across all subunits hold the dominant values. These values are also institutionalized through well-established artefacts, thereby making it difficult for those values to change. Furthermore, strong cultures tend to be long-lasting; some can be traced back to company founder’s values and assumptions. In contrast, companies have weak culture when the dominant values are short-lived and held mainly by a few people at the top of the organization.
There has been a great deal of anecdotal evidence and some empirical evidence regarding the performance effects of organizational culture. Denison (1990) found empirical support for the participation/involvement view of culture – higher levels of employee participation were correlated with better organizational performance There is also strong anecdotal support indicating that the primary cause of failure of most major change efforts (such as TQM and reengineering) has been the failure to successfully change the organizational culture (CSC Index 1994; Caldwell 1994; Goss et al. 1993; Kotter and Heskett 1992).
Kotter and Heskett (1992) have attempted to make this intriguing, but admittedly inconclusive, anecdotal evidence more systematic and empirical. They had financial analysts identify the firms they considered most successful and then describe the key factors discriminating these firms from those that were less successful. Seventy-four of the seventy-five analysts indicated the organizational culture was a key factor. .
The general explanation for this is that these companies failed to change with the times – perhaps the very strength of their culture and their past success prevented them from quickly and successfully adapting to new environmental requirements (Christensen 1997). This paradox suggested the need for more longitudinal investigations of the effects of organizational culture. Growing evidence that excellent companies do not remain excellent for long also suggests that the traditional notion of a strong culture may need to be replaced with a more discerning understanding of the types and role of culture and the need to change culture over the life cycle of the organization. For example, perhaps a strong consistent culture is useful in the beginning start- up phase of an organization but a mature organization may need to become more differentiated as well as more oriented to change and learning. What is important for long - term organizational success may not be a particular type of organizational culture per se but the ability to effectively manage and change the culture over time to adjust to changes in the situation and needs of the organization? This understanding has pointed to the need for a more dynamic understanding of culture and the role of organizational leaders in ensuring that the culture contributes both to the organization’s current and future success.
Organizational culture has been linked to economic performance and organization viability/ success (Denison & Mishra, 1995; Pothukuchi, Damanpour, Choi, Chen, and Park 2002; Sorensen, 2002; Devis, 2007).). Organizational culture has also been shown to be important for successful new product/process innovation and organizational change (Plakhotnik and Tonette, 2005; Umiker, 1999).
Although little empirical research exists to support the link between organizational culture and organizational performance, there is little doubt among experts that this relationship exists. Organizational culture can be a factor in the survival or failure of an organization - although this is difficult to prove considering the necessary longitudinal analyses are hardly feasible. The sustained superior performance of firms like IBM, Hewlett-Packard, Procter & Gamble, and McDonald's may be, at least partly, a reflection of their organizational cultures.
A 2003 Harvard Business School study reported that culture has a significant impact on an organization’s long-term economic performance. The study examined the management practices at 160 organizations over ten years and found that culture can enhance performance or prove detrimental to performance.
Organizations with strong performance-oriented cultures witnessed far better financial growth. Additionally, a 2002 Corporate Leadership Council study found that cultural traits such as risk taking, internal communications, and flexibility are some of the most important drivers of performance, and may impact individual performance. Furthermore, innovativeness, productivity through people, and the other cultural factors cited by Peters and Waterman (1982) also have positive economic consequences.
Denison, Haaland, and Goelzer (2004) found that culture contributes to the success of the organization, but not all dimensions contribute the same. It was found that the impacts of these dimensions differ by global regions, which suggests that organizational culture is impacted by national culture. Additionally, Clarke (2006) found that a safety climate is related to an organization’s safety record.
Adkins and Caldwell (2004) found that job satisfaction was positively associated with the degree to which employees fit into both the overall culture and subculture in which they worked. A perceived mismatch of the organization’s culture and what employees felt the culture should be is related to a number of negative consequences including lower job satisfaction, higher job strain, general stress, and turnover intent.
It has been proposed that organizational culture may impact the level of employee creativity, the strength of employee motivation, and the reporting of unethical behavior, but more research is needed to support these conclusions.
Organizational culture also has an impact on recruitment and retention. Individuals tend to be attracted to and remain engaged in organizations that they perceive to be compatible. Additionally, high turnover may be a mediating factor in the relationship between culture and organizational performance.
Deteriorating company performance and an unhealthy work environment are signs of an overdue cultural assessment.
OBJECTIVES OF THE STUDY AND METHODOLOGY
This study seeks to explore relationship between organization culture and its impact on employee’s motivation and job performance. The objective of the study was to study the organization culture as perceived by the employees working in the organization. Another objective was to study the impact of organization culture on job performance. Researcher tries to develop the organizational culture variable construct that that affects the employees for enhancing work motivation and his performance. For this 229 respondents working with different manufacturing, trading and service organization in Dehradun District of Uttrakhand state were selected for the sample. In order to collect the data for this study, the survey questionnaire method was adopted. An interview schedule was also developed based on the analysis of the responses in the survey questionnaire. The questionnaire and interview schedule were validated to ensure that the instruments were appropriate for their purposes. The reliability of the questionnaire was 0.876 indicating that the questionnaire would measure what it was purported to measure. Before the questionnaire was distributed to the sample, it was piloted on twenty five students to obtain feedback on the clarity of the items. A few minor errors were detected. After the errors were corrected, the questionnaire was administered to the sample. The responses to these
parameters were gathered, coded, tabulated and analyzed. To test the hypothesis various statistical techniques like Mean, standard deviation, factor analysis and χ2 test and ANOVA was applied.
TABLE 1: DEMONSTRATES THE BREAKDOWN OF THE SAMPLE BY DEMOGRAPHIC CATEGORIES
The data presented in the above table indicates that sample is dominated the respondents who are in the age group of 25-50 Years as together it was indicated by 62.5% respondents in the sample. Respondents of male category accounts for 83.4%. married category respondents account 71.6% respondents in the sample. It is seen in the study that sample leads of the respondents educated upto graduation and earning above Rs 30000PM.
TABLE 2: NATURE OF ORGANISATION
Although organizational culture had been the subject of social science but its managerial application called the intense concern of industrial leaders and managers. Subsequently, much research has indicated that organizations within an industry share distinct cultural values and that the culture-performance relationship. Building on the assumption that industries place unique cultural requirements; an atempt was directed to know the nature of organisation which employees is associated with. The study indicates that little more than one third employees in the sample are from the manufacturing organisation. Trading organisation account for 20.1% employees. Majority of the respondents in the sample (46.3%) are from the services organisation.
TABLE 3: PERIOD OF ASSOCIATION
Organizational culture values varied significantly among the firms. The variation in cultural values had a significant effect on the rates at which the newly hired employees voluntarily terminated employment. The relationship between the employees' job performance and their retention also varied significantly with organizational culture values. The cultural effects were stronger than the combined exogenous influences of the labor market and the new employees' demographic characteristics. The cultural effects are estimated to have resulted in over six million dollars' difference in human resource costs between firms with different cultural values. Implications for research on person-organization fit are discussed. The study reveals that sample is dominated by those respondents who are associated since last ten years from the organisation.
FACTOR ANALYSIS
Factor analysis is a method of data reduction. It does this by seeking underlying unobservable (latent) variables that are reflected in the observed variables. The purpose of factor analysis is to discover simple patterns in the pattern of relationships among the variables. In particular, it seeks to discover if the observed variables can be explained largely or entirely in terms of a much smaller number of variables called factors. In our case suppose each of 229 employees, who are all familiar with different kinds of organizational culture factor motivating him to enhance their performance, rate each of 15 variables on the question. We could usefully ask about the number of dimensions on which the ratings differ.
TABLE NO 4: RELIABILITY STATISTICS
In order to accurately capture the respondent’s perception reliability analysis is carried out. So first reliability analysis was carried out with the help of Reliability Test Here, the reliability is shown to be good using all 15 items because alpha is .916 (Note that a reliability coefficient of .60 or higher is considered
"acceptable" in most social science research situations.
TABLE 5 KMO AND BARTLETT's TEST
Method: Principal Component Analysis.
Categories Count Percentage
Age
Upto 25 Years From 25-35 Years 35-50 Years 50 to 60 Years
12 70 73 74
5.2 30.6 31.9 32.3
Gender Male
Female
191 38
83.4 16.6 Marital Status Married
Unmarried
164 65
71.6 28.4 Education Level
Under Graduate Graduate Post Graduate
57 133 39
24.9 58.1 17.0 Monthly Income Upto Rs15000PM
Rs15001 to Rs30000PM Rs30001 -Rs50000PM Above Rs50000PM
7 54 83 85
3.1 23.6 36.2 37.1
Sl NO Nature of organization No of respondents Percentage
A Manufacturing 77 33.6
B Trading 46 20.1
C Service organisation 106 46.3
D Total 229 100.0
Sl NO Period of Association No of respondents Percentage
A 0- 3 Years 34 14.8
B 4-5 Years 42 18.3
C 6 to 10 Years 16 7.0
Above 10 Years 137 59.8
D Total 229 100.0
Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items
.916 .919 15
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .847 Bartlett's Test of Sphericity Approx. Chi-Square 2598.579
df 105
Sig. .000
VOLUME NO.3(2012),ISSUE NO.5(MAY) ISSN0976-2183 The above table indicates KMO and Bartlett’s test of sphericity. This measure varies betweenand 1, and values closer to 1 are better. The Bartlett’s Test of Sphericity tests the null hypothesis that the correlation matrix is an identity matrix. These tests provide minimum standard which should be passed before a factor analysis (or a principal components analysis) should be conducted
ANALYSIS AND DISCUSSION
Understanding organizational culture and its relationaship with employees motivation and job performance has been of major interest for social as well as managerial organisation. Most of the operational decisions are employees perception toward organizational cultural issue. These decisions are also influenced by exogenous factors such as economic conditions and government policies, and market interaction among the major stake holders. The empirical study indicates that employees retention and job motivation based on their own personal attributes such as age and education, and their professional aspiration as well as well as organizational structure, infrastructure and its past performance. Organization designs their work structure in order to optimize their performance. Keeping these into consideration, an attempt was made to assess the issues related to organizational culture and its impact on employees behavior. For this respondents were asked to give their views on a rating scale on the following statements such as There is little variation in style of dress among employees, We can and do make 'mid-course' corrections easily, Top executives in this company are innovative and approachable, People at all levels of the organisation are continuously trying to build or rebuild a 'better mouse-trap', There is an openness to suggestions from people at all levels of the organisation, Our products and services reflect the awareness of a diverse consumer base., When problems emerge, there is a willingness to fix them, Our HR department is creative in finding new ways to attract top talent among diverse groups, Rewards are given out to suit the preference of the recipients, In my organisation, change is viewed as a challenge and an opportunity, Organisational policies are reviewed annually to assess effectiveness, Performance evaluations in this organisation measure an employee's adaptation to change., My boss values new ideas and implements them quickly., "We've always done it that way" is a philosophy that describes my company's response to new ideas., Our strategic plan is evaluated once a year and revised as needed, . For this purpose, respondents were asked to rate the various statement on a scale of 1 to 4 in order of their preference. The exploratory factor analysis was used in order to identify the various elements of organizational culture and its relationship with motivational and job performance issues. Principal Component analysis was employed for extracting factors and orthogonal rotation with Varimax was applied. As latent root criterion was used for extraction of factors, only the factors having latent roots or Eigen values greater than one were considered significant; all other factors with latent roots less than one were considered insignificant and disregarded. The extracted factors along with their Eigen values are shown in Table 6. The factors have been given appropriate names on the basis of variables represented in each case. The names of the factors, the statements, the labels and factor loading have been summarized in Table 6. There are three factors each having Eigen value exceeding one for motivational factors. Eigen values for three factors are 7.345, 1.852 and 1.325 respectively. The index for the present solution accounts for 70.143% of the total variations for the motivational factors. It is a pretty good extraction because we are able to zero-in on the number of choice factors (from 15 to3 underlying factors), we lost 29.857 % of information content for choice of variables. The percentages of variance explained by factors one to three are 48.966%, 12.345% and 8.832% respectively. Large communalities indicate that a large number of variance has been accounted for by the factor solutions. Varimax rotated factor analysis results for motivational factors are shown in table 5 which indicates that after 3 factors are extracted and retained the communality is .871, for variable1, .823 for variable 2, 0.769 for variable 3 and so on. It means that approximately 87.7% of the variance of variable1 is being captured by extracted factors together. The proportion of the variance in any one of the original variable which is being captured by the extracted factors is known as communality (Nargundkar, 2002).
TABLE 6: PRINCIPAL COMPONENT ANALYSIS WITH ROTATED COMPONENT
Factors Communality
1 2 3
There is little variation in style of dress among employees. .912 .871
We can and do make 'mid-course' corrections easily. .857 0.823
Top executives in this company are innovative and approachable .812 .769
People at all levels of the organisation are continuously trying to build or rebuild a 'better mouse-trap'. .788 .646 There is an openness to suggestions from people at all levels of the organisation. .744 .604
Our products and services reflect the awareness of a diverse consumer base. .672 .726
When problems emerge, there is a willingness to fix them. .606 .782
Our HR department is creative in finding new ways to attract top talent among diverse groups. .594 .523
Rewards are given out to suit the preference of the recipients. .836 .720
In my organisation, change is viewed as a challenge and an opportunity .775 .672
Organisational policies are reviewed annually to assess effectiveness. .688 .627
Performance evaluations in this organisation measure an employee's adaptation to change. .681 .640
My boss values new ideas and implements them quickly. .664 .749
"We've always done it that way" is a philosophy that describes my company's response to new ideas. .626 .586
Our strategic plan is evaluated once a year and revised as needed .879 .784
Eigen Values 7.345 1.852 1.325
% of Variation 48.966 12.345 8.832
Cumulative % of Variation 48.966 61.311 70.143
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 8 iterations.
TABLE 7: PRINCIPLE COMPONENTS AND ASSOCIATED FACTORS Organisation openness in managing diversity
(F 1)
Policy of promoting innovation and change management
(F 2)
Policy of evaluation of strategic plan (F 3)
There is little variation in style of dress among employees. Rewards are given out to suit the preference of the recipients.
Our strategic plan is evaluated once a year and revised as needed We can and do make 'mid-course' corrections easily. In my organisation, change is viewed as a challenge and
an opportunity Top executives in this company are innovative and
approachable
Organisational policies are reviewed annually to assess effectiveness.
People at all levels of the organization are continuously trying to build or rebuild a 'better mouse-trap'.
Performance evaluations in this organisation measure an employee's adaptation to change.
There is an openness to suggestions from people at all levels of the organisation.
My boss values new ideas and implements them quickly.
Our products and services reflect the awareness of a diverse consumer base.
"We've always done it that way" is a philosophy that describes my company's response to new ideas.
When problems emerge, there is a willingness to fix them.
Our HR department is creative in finding new ways to attract top talent among diverse groups.
Principal components & associated Variables (Ref: Table 7) indicates that first factor (F1) is the Organisation openness in managing diversity. This factor is the combination of There is little variation in style of dress among employees, We can and do make 'mid-course' corrections easily, Top executives in this company are innovative and approachable People at all levels of the organization are continuously trying to build or rebuild a 'better mouse-trap', There is an openness to suggestions from people at all levels of the organisation, Our products and services reflect the awareness of a diverse consumer base, When problems emerge, there is a willingness to fix them, Our HR department is creative in finding new ways to attract top talent among diverse groups, And accounts 48.966%
variance of the total variances. The second Factor (F2)is the Policy of promoting innovation and change management which is the combination of various factor like Rewards are given out to suit the preference of the recipients, In my organisation, change is viewed as a challenge and an opportunity, Organisational policies are reviewed annually to assess effectiveness,Performance evaluations in this organisation measure an employee's adaptation to change,My boss values new ideas and implements them quickly,"We've always done it that way" is a philosophy that describes my company's response to new ideas,and accounts 12.345% variance of total variance. Third factor (F3) is the Policy of evaluation of strategic plan which is the combination of outcome of the variable Our strategic plan is evaluated once a year and revised as needed And account 8.832% variance of the total variances.
TABLE 8: DIFFERENT OUTCOME OF ORGANIZATIONAL CULTURE AS PERCEIVED BY EMPLOYEES
Apart from identifying key organizational factor, an attempt was made to assess the outcome of organizational culture as erceived by the employee. It is seen in the table that 29.3% employees Are of the opinion that it has increased my work satisfaction22.3% of the employee were of the opinion that it has improved communication with their supervisor. 25.8% employees revealed that Relationship with workgroup has become better, 16.2% feels that it has helped them in improving their productivity 1.3% feels that Organisation profitability has increased substantially. 5.2% employees indicated other benefits as outcome of organizational culture.
TABLE 9: MEAN OF DIFFERENT ORGANISATIONAL CULTURAL FACTOR ACROSS THE PERCEIVED OUTCOME
Outcome Organisation openness in
managing diversity
Policy of promoting innovation and change management
Policy of evaluation of strategic plan
It has increased my work satisfaction 3.1194 3.1716 2.9403
Improved communication with supervisor
2.5784 3.0327 2.3725
Relationship with workgroup better 2.6377 2.8842 2.7797
It has helped me in improving my productivity
3.2500 3.1441 3.1892
Organisation profitability has increased substantially
2.9583 3.0000 2.3333
Others 1.7500 2.5000 3.0000
Total 2.8221 3.0247 2.8079
It is seen that mean rating of organizational outcome in improving productivity has scored highest mean among the entire variable. This signifies that majority of the employees are of the opinion that organizational culture is helpful in improving employees productivity and inturn helpful of improving organizational productivity.
TABLE10: ONE WAY ANOVA ACROSS OUTCOME OF ORGANIZATIONAL CULTURE AS PERCEIVED BY EMPLOYEES
Sum of Squares df Mean Square F Sig.
Organisation openness in managing diversity Between Groups 31.579 5 6.316 21.458 .000
Within Groups 65.638 223 .294
Total 97.217 228
Policy of promoting innovation and change management Between Groups 6.448 5 1.290 3.702 .003
Within Groups 77.689 223 .348
Total 84.138 228
Policy of evaluation of strategic plan Between Groups 17.385 5 3.477 4.304 .001
Within Groups 180.161 223 .808
Total 197.546 228
Sl NO Period of Association No of respondents Percentage
A It has increased my work satisfaction 67 29.3
B Improved communication with supervisor 51 22.3
C Relationship with workgroup better 59 25.8
D It has helped me in improving my productivity 37 16.2
E Organisation profitability has increased substantially 3 1.3
F Others 12 5.2
Total 229 100.0
VOLUME NO.3(2012),ISSUE NO.5(MAY) ISSN0976-2183 After comparing the mean one way ANOVA was carried out to test the hypothesis that impact of organizational cultural factor does not differ significantly across the organization outcome as perceived by the employees working in the organization. From the table it is clear that calculated value of F is greater than the tabulated value of F (2.37) at (p< 0.05) level of significance in the case of all the factors under consideration. Hence null hypothesis is rejected indicating that there is significant difference in the mean of different organizational cultural factor across the orgaisational outcome as perceived by the employees.
To conclude, it can be said that organizations culture has emerged as one of the most important factor which need to be looked after carefully. The success and growth of an organisation depends on how effectively and efficiently does it employee performs and culture is a means through which employees learn and communicate what is acceptable or unacceptable in an organisation in the light of its values and norms. It is seen that significant difference exists in the mean of different organizational cultural factor across the orgaisational outcome as perceived by the employees. The different organizational culture factor like Organisation openness in managing diversity, Policy of promoting innovation and change management, Policy of evaluation of strategic plan should be analysed carefully and promoted in the organization to enhance the employees productivity and in turn improving oprganisational performance.
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